Treasury to Sell $5 Billion Worth of AIG Stock

The U.S. Treasury Department said Friday that it has launched a public offering of $5 billion of its American International Group common stock.

AIG

The move represents another step for the Treasury toward unwinding its position in the financial crisis bailout programs.

The insurer , which received a total of $182 billion from the government during the crisis, intends to buy up to $3 billion of the offering at the initial public offering price, Treasury said in a statement.

Treasury currently holds a 61 percent stake in AIG.

AIG's shares, which are listed on the New York Stock Exchange, were halted ahead of the Treasury's announcement.

AIG CEO: When Time Comes, We'll Be Ready to Buy Back Shares

Robert Benmosche, AIG CEO, says the firm's insurance operations and aircraft leasing unit posted solid profits, adding that the company is closer to returning the money it borrowed from the U.S. government.

Citigroup Global Markets, Deutsche Bank Securities, Goldman Sachs, and JPMorgan Securities have been retained as joint bookrunners. Other underwriters are expected to be added.

The offering's underwriters will have a 30-day option to purchase as much as an additional $675 million in stock from the Treasury.

The announcement comes one day after AIG reported earningsthat were more than twice what Wall Street had been expecting as tax benefits boosted results and operating income grew across the company's varied insurance businesses.